The following transactions were recorded by an inexperienced bookkeeper during the months of June and July for Cullumber Company. Cullumber Company uses a perpetual inventory system. June 10 11 12 20 20 July 15 15 17 A purchase of $4,200 of merchandise from DanDan Distributors was debited to Purchases and credited to Cash. The terms of the purchase were 2/10, n/30, FOB shipping point. The invoice for freight in the amount of $255 for the delivery of merchandise purchased from DanDan was paid and was debited to Delivery Expense. Damaged goods totalling $100 were returned to DanDan Distributors for credit. The bookkeeper recorded a debit to Accounts Receivable and a credit to Sales Returns and Allowances. A payment was made to DanDan Distributors for the June 10 purchase. The payment was a debit to Purchases and a credit to Cash. Cullumber sold goods for $9,085; Sales was credited and Cost of Goods Sold was debited for this amount. The cost of the inventory sold was $4,100. The terms of the sale were 1/15, n/30, FOB destination. Freight charges on the above transaction were debited to Accounts Receivable and credited to Cash for $155. The bookkeeper believed the customer had to pay for the freight charges. Cullumber's manager gave the customer from July 15 a $240 allowance. The entry made to record the allowance was a debit to Sales and a credit to Sales Returns and Allowances. (a) Review each transaction below and indicate whether you agree or disagree with how the bookkeeper accounted for the transaction. June 10 A purchase of $4,200 of merchandise from DanDan Distributors was debited to Purchases 11 12 20 20 July 15 and credited to Cash. The terms of the purchase were 2/10, n/30, FOB shipping point. The invoice for freight in the amount of $255 for the delivery of merchandise purchased from DanDan was paid and was debited to Delivery Expense. Damaged goods totalling $100 were returned to DanDan Distributors for credit. The bookkeeper recorded a debit to Accounts Receivable and a credit to Sales Returns and Allowances. A payment was made to DanDan Distributors for the June 10 purchase. The payment was a debit to Purchases and a credit to Cash. Cullumber sold goods for $9,085; Sales was credited and Cost of Goods Sold was debited for this amount. The cost of the inventory sold was $4,100. The terms of the sale were 1/15, > 15 17 Freight charges on the above transaction were debited to Accounts Receivable and credited to Cash for $155. The bookkeeper believed the customer had to pay for the freight charges. Cullumber's manager gave the customer from July 15 a $240 allowance. The entry made to record the allowance was a debit to Sales and a credit to Sales Returns and Allowances.